1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Veseljchak [2.6K]
3 years ago
7

A real estate company owns 120 apartments which are fully occupied when the rent is $650 per month. Analytics indicate that for

each $25 increase in rent, 4 apartments will become unoccupied. What rent should be charged in order to obtain the largest gross income

Business
2 answers:
chubhunter [2.5K]3 years ago
6 0

Answer:

The rent that should be charged to maximize gross icome is $700.

Explanation:

The rent can be increased by $25 steps.

The rent equation can be written as,

Rent = 650 + 25x

The Apartments occupied will fall by 4 apartments everytime the rent is increased by $25.

The apartment occupancy equation can be written as,

Apparment occuoancy = 120 - 4x

Where, x is the number of times the rent is increased by $25.

The revenue will be,

Revenue = Rent * No of apartments occupied

Revenue = (650 + 25x) * (120 - 4x)

Solving the equation we get quadratic equation,

Revenue = 78000 - 2600x + 3000x - 100x²

0 = 78000 + 400x - 100x²

As we need the change, we need to take the derivative of this equation.

d/dx = 0 + 1 * 400x° - 2 * 100x

400 - 200x = 0

400 = 200x

400 / 200 = x

x = 2

Thus, the rent that should be charged to amximize gross income is,

Rent = 650 + 25 * (2)  = $700 per apartment

The revenue at this rent will be,

Revenue = 700 * [120 - 4 * (2)] = $78400

Free_Kalibri [48]3 years ago
6 0

Answer:

Check the explanation

Explanation:

This is a question under Calculus <em><u>(which is another segment of mathematics and it is utilized for understanding the changes between values that are related by a function.  Calculus is used in a lot of diverse fields of study such as astronomy, physics, biology, economics, medicine, engineering and sociology).</u></em>

The step by step solution to the above question can be seen in the attached image below:

You might be interested in
The crusades, fought on the basis of religion occurred in the continent of
vladimir2022 [97]
Asia the crusades fought holy wars
3 0
3 years ago
Your broker charges a commission of 5.1% of the cost of the stock you so if you sell a batch of stock worth 2,617,75 how much co
dmitriy555 [2]

Answer:

a. $133.51

Explanation:

Selling the stock for a relative amount of money would result in a total price of

$133.51.

I also took the test on e2020

5 0
2 years ago
Suppose that the production function faced by a 30-weight ball bearing producer is given by Q- 4KL, where MP = 2K2 and MP = 2K L
Delicious77 [7]

Answer and Explanation:

The answer is attached below

6 0
3 years ago
Determine whether each of the following topics would more likely be studied in microeconomics or macroeconomics. The effect of g
DaniilM [7]

Answer: See explanation

Explanation:

We should note that microeconomics deal with a particular sector in the economy and not the whole sector. Macroeconomic deals with the whole economy and looks at ways by which the decisions of government have an effect on the whole economy.

Based on the above explanation, the answer is provided below:

• The effect of government regulation on a monopolist's production decisions= Microeconomics

• The effects of government tax policy on long-term economic growth = Macroeconomics

• The optimal interest rate for the Federal Reserve to target = Macroeconomics

4 0
2 years ago
A U.S.-based importer, Zarb Inc., makes a purchase of crystal glassware from a firm in Switzerland for 39,960 Swiss francs, or $
IRINA_888 [86]

Answer:

e. $638

Explanation:

payment to be made as per forward contract (IN $)

= 39960/ 1.682  

= $23757.43  

now the actual rate after 90 days is 1.638

payment at 1.638 rate = 39960/ 1.638

                                    = $24395.6  

loss by hedging = $24395.6 - $23757.43  

                           = $638.17

Therefore, The U.S. firm have saved or lost $638 in U.S. dollars by hedging its exchange rate exposure.

4 0
2 years ago
Other questions:
  • On January 1, Wei company begins the accounting period with a $40,000 credit balance in Allowance for Doubtful Accounts. On Febr
    8·1 answer
  • What is the most important thing about meeting new contacts? A. Building your Rolodex B. Overcoming shyness C. Getting referrals
    5·1 answer
  • Identity-__________ individuals lack clear direction. they are not committed to values or goals, nor are they actively trying to
    7·1 answer
  • In practice, economists: agree about what the level of potential output is but disagree about what policies are appropriate. dis
    12·1 answer
  • Assume all excavators delivered in 2018 are delivered at year end, calculateTGX’s 2018 revenue based on the transactions describ
    14·1 answer
  • a. What is the total cash outflow for buying and for leasing a motor vehicle with a cash price of $33,000
    15·1 answer
  • In​ 2007, Newmarket Inc. set as its annual production goal the manufacture of​ 125,000 units. By​June, the economy had declined
    6·1 answer
  • Tom Lewis, an individual taxpayer, performs services for the Red Cross at an out-of-town location for three weekends during the
    9·1 answer
  • A manufacturer sells his product at $23 per unit, selling all he produces. His fixed cost is $18,000 and his variable cost per u
    12·1 answer
  • If the interest rates on all bonds rise from 5 to 6 percent over the course of the year, which bond would you prefer to have bee
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!